How to Buy a House with Tenants Without the Lease

Tenants with a lease agreement are protected by state and federal laws.

Many buyers find the perfect property, only to find out it's filled with tenants. The only true way to buy a house with existing tenants without the lease is to make tenant removal a condition of the purchase. After buying the property, there are ways around honoring the lease if you hope to flip the property with a quick sale or move into the property yourself. Knowing your rights and the rights of the tenants enables you to make the right choices and abide by federal law.

1

Submit an offer on the property that is contingent on the house being vacant at the time of closing. Stipulate that the current homeowner must figure out a way to break the lease, evict the tenant or offer incentive to leave. If the homeowner accepts your offer, you need to do nothing else. If the owner doesn't accept your offer, reconsider whether you want to deal with removing the tenants yourself before making a second offer.

2

Make a second offer for less money than the first one, if the owner is unwilling to deal with the tenants. You need money to handle the tenant after closing on the property. Once you close on the property, it will be your responsibility to remove the tenants from the property.

3

Cancel a month-to-month lease agreement. A tenant with a lease agreement may stay the length of his lease agreement. Tenants without a formal lease or on a month-to-month lease can be removed from the property in short order. Provide the tenant with a 30-day notice to vacate the property -- 60-day notice if the tenant was there more than a year. After the time period passes, you may legally evict the tenants from the property.

4

Offer money for a lease buyout. You may offer a financial incentive to entice the tenant to voluntarily leave. Be prepared to pay a significant amount. The tenant will probably request at least enough money to move to another property, which could be expensive. Get the agreement in writing before you hand over any money.

5

Prepare to move into the residence. Federal law gives a tenant the right to remain in the property for the duration of the lease agreement with one exception. When the homeowner wants to move into the property as his primary residence, the tenant may be forced out. You must provide a 30-day notice to vacate using the reason you want to inhabit the property as your principal residence.

Tip

Expect closing to take longer if the homeowner must remove the tenant prior to closing.

Warning

You cannot threaten or intimidate the tenant into leaving the property. You also cannot change the locks or remove personal property from the residence.

About the Author

Leigh Thompson began writing in 2007 and specializes in creating content for websites. She has been published online in various capacities. Thompson has an associate degree in information technology from the University of Kansas and is working on a bachelor's degree in business and personal finance.